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Welcome to
Credit Today Online

Credit Today is the premier online portal for trade credit professionals.

This web site and all the resources within are for subscribers to Credit Today Online. If you are new to our site, please feel free to browse some of our sample articles now!

Why The Credit Department is a Critical Area of Customer Support and Steps to Take to Improve Customer Satisfacton
"The second person a customer will have contact with after the salesperson is usually someone from the credit department," says one senior credit manager. "How this contact is handled can affect a customer's perception of the entire organization, either positively or negatively. That's why it's so important to recognize the credit department as a critical area of customer contact within your company. Make sure your people are making the most out of every customer contact." Here are some of his ideas for improving customer satisfaction: . . . keep reading

Nine Earmarks of the "Right" A/R Outsourcing Partner
August 31, 2010
Are you ready to make outsourcing a part of your ARM process? An increasing number of credit professionals already have. They're finding this strategy effective in taking control of their receivables and handling the challenges of managing DSO, cash flow and write-offs. One solution worth considering is outsourcing the collection of at least a portion of your accounts receivable portfolio. . . . keep reading

U.S. businesses paying bills more slowly, according to Experian's latest Business Benchmark Report
August 31, 2010

Experian�, the leading global information services company, today announced the results of its monthly Business Benchmark Report. Findings from the July report show that the national average number of days that businesses paid their bills beyond contracted terms increased by 2 percent in July compared with June. When compared with six months ago, the average payment beyond contracted terms has increased by 3.3 percent. The July report also showed that the national average dollars delinquent and dollars severely delinquent (91 or more days) are up (6 percent and 13 percent, respectively) when compared with six months ago. . . . keep reading

Benchmarking Extended Terms: Everything You'll Need to Know Manage This Critical Marketing and Credit Process
By Dave Schmidt

Nearly two-thirds of the 289 participants in Credit Today's Extended Terms Benchmarking Survey experienced an increase in requests for extended terms over the past six months, with just under one-quarter reporting a significant increase. Only two percent report a decrease in requests for extended terms. In addition, you'll learn:

What percentage of extended terms requests are granted, including differences between industry category
What percentage of extended terms approvals are for temporary vs. permanent extensions
Who with the corporation has the authority to approve extended requests
What percentage of companies have policies for extended terms requests, and what form those policies take
What factors are most important when considering whether or not to approve extended terms

. . . keep reading

Benchmarking Extended Terms: Survey Participants Weigh In on the Process With Some Great Advice
Credit Today's Benchmarking Survey on Extended Terms concluded by asking participants to share any additional thoughts they have about the granting of extended terms, including any special challenges they are facing; how they are coping with those challenges; and where they have had success in dealing with requests for extended terms. Responses are broken down into the following categories:

Why many avoid granting extended terms entirely
Reasons for approving extended terms
The challenges caused by extended terms
A discussion of industry specific issues
Why credit worthiness is so significant in the decision to extend terms
How the Robinson-Patman Act impacts request for extended terms, as well as credit department strategy

. . . keep reading

Offering Customers Alternative Financing
Struggling customers need financing for operating funds, and your competitors have begun providing it. Do you have to follow suit? Not necessarily, advises this credit veteran who describes how his company met the competition by establishing an alternative financing program.

The four advantages of establishing internal financing for customers
Four serious negatives you should think about before establishing such a program, and which one was the most significant for this company
How much cash you'll need to finance an internal financing division
What the alternative solution was for this firm and how they implemented it

. . . keep reading

Selling Your Value
I was recently surprised and disappointed to hear that a friend--a credit manager who I knew and respected--had lost her job due to a reduction in force (a.k.a. reengineerng). I was surprised because the company that she worked for is sizable and doing well with both domestic and international accou . . . keep reading

Press Release: WAUSAU Financial Systems and Aite Group Uncover Receivables Processing Pain Points for Corporations
August 11, 2010
Study finds nearly 60 percent of respondents are not fully satisfied MOSINEE, Wis. -- August 11, 2010 -- In this credit constrained environment, the application of cash has become increasingly critical to the financial health and stability of companies. Today, WAUSAU Financial Systems ann . . . keep reading

Was This Asset Sale Commercially Reasonable?
This easy-to-ready legal case study explores the concept of a "commercially reasonable" price for collateral that is seized and sold by a creditor. Sometimes, for whatever reason, a creditor may not get the best price for an asset, which raises the question of whether or not that sale price was fair, or "commercially reasonable." Learn the implications for both debtor and creditor under UCC Section 9-404, as well as:

Steps a creditor should take to ensure they get a commercially reasonable price, and how that protects against claims by the debtor
Why private sales create more problems than public sales

. . . keep reading

Customer Expanding? Four Questions to Ask in a Review
"When a customer decides to expand its business, it's time to review the account," says an Ohio credit manager. "Often, customers give signs of growth by requesting increases in their credit lines, trying to extend the terms of invoices, or by substantially changing their payment or order pattern. . . . keep reading

Sticking to a Policy That Works
This article details the credit policy established by AFG Industries, a Kingsport, TN, manufacturer of flat glass for architectural residential markets. In this article, you'll learn:

In addition to the usual info, what three key clauses are included on their credit app
The key red flag (and why) they look for when checking the list of trade credit references
What information is reviewed
Strategies for establishing and setting up marginal customers
Four ways they monitor existing customers
How their documentation system works and what it tracks
What trends they look for when monitoring customers for problems
The importance of working with sales
Customer visits: Three red flags that the Director of Credit looks for when visiting customers that might be in trouble

. . . keep reading

Attorney Fees for International Collections
Legal case study on foreign attorney collection fees. A credit exec gets sticker shock when learning the cost options on a foreign collection action. What are his options and what are the norms out there? This case covers...

the challenges of retaining foreign collection attorneys
why attorneys in many countries do not work on a contingency basis
typical practices in some countries

. . . keep reading

Monitoring Auction Sales of Assets
In this legal Case Study, our hero creditor finds his unpaid-for equipment gone and resurfaced at a simliar business 300 miles away. The new business is owned by the son of the owner of the business he'd sold the equipment to, who says he bought the equipment from the company who purchased it at the going out of business auction. Does our creditor have any recouse? This case examines that question, as well as...

The legal ramifications auctions to sell a debtor's remaining assets for the benefit of a creditor or creditors
A step-by-step breakdown of how the auction process proceeds
How much a sheriff is typically paid in these circumstances
How unscrupulous debtors sometimes use a "friendly creditor" to get a lien and bid on the assets -- and what you should do if you suspect this to be the case
Keyword defined: Document of execution

. . . keep reading

The Strategic Value of Centralized Collections
Cash collection is critical to every business. In this respect, nothing has changed for centuries; without cash, a company cannot pay workers, invest in production or fulfil customer orders. With receivables such a fundamental driver for the business, it is in some ways surprising that a large proportion of companies have yet to centralize and optimize their collections management, in many cases choosing to focus first on accounts payable. After all, few CFOs are awake at night worrying about whether a payment has been made; the same cannot be said for collections, which have a major impact on the company. This article looks at some of the challenges and issues involved in centralizing collections, and provides examples of how companies have addressed them. . . . keep reading

How to be an Effective Witness at Trial
This legal study covers:

The key differences between a jury trial and one before a judge
How to testify effectively in a civil collection case
The keys to success in a collection trial
Specific language to use - and avoid - when answering questions
Sample lines of questioning and proper ways to answer (given the facts of your unique situation)
14 tips for effective testimony at a trial

. . . keep reading

Selling to Non Creditworthy Accounts

At one California high-tech company, where (as we noted in an earlier issue) customer visits are regarded as investments rather than expenses, there is keen interest in seizing the sales and profit potentials available from properly crafted relationships with "non creditworthy accounts." "Controlled sales to selected non creditworthy accounts under the right conditions can be a source of incremental profitability." is how this company's written credit policy put it. . . . keep reading

The Growing Risk of Uninsured Losses
Many of us in Credit have a tendency to gloss over our customers' insurance programs. We rely on customers to evaluate the magnitude of the hazards to which their businesses are exposed and to properly insure against them. It is, in the final analysis, up to customers to relate their exposure to the . . . keep reading

Policies and Procedures: 22 Items That Your Credit Policy Manual Should Cover
A well-written credit policy manual is a critical document for any well-run credit department. If you have been meaning to put one together, or need to update yours, here are 22 items that should be your manual should cover: . . . keep reading

Getting Paid Through Assignments

If you have customers who are chronically late because they can' t collect on time from third parties, you may want to consider using assignments to get payments directly from those third parties. This stops the funds from going through the debtor and prevents the debtor from being tempted to use the funds to pay someone else. . . . keep reading

Become Pro-Active Instead of Reactive When Managing Your AR
By David Schmidt
The ability to quantify risk across your entire accounts receivable portfolio is critical to your ability to assume a pro-active rather than a reactive credit management strategy. The greater your understanding of the risk associated with your AR, the more strategically you can allocate resources a . . . keep reading

More Headlines

This month's topic: Credit Card Usage

Click here to participate! We're examining:

What percentage of credit departments are currently accepting credit cards
What percentage of sales are paid via credit card
The various ways by which credit cards can be accepted (phone, web interface, etc.)
Which merchant accounts are most popular
What discount rates are being charged
Lessons-learned when setting up an account
... and much more!

September 2010

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